- Hopes of a possible US-China trade deal weighed on the CHF’s safe-haven status.
- The USD bulls remained on the defensive despite the upsurge in the US bond yields.
- Investors look forward to the US ISM non-manufacturing PMI for a fresh impetus.
The USD/CHF pair climbed to near one-week tops in the last hour, with bulls looking to extend the momentum further beyond the 0.9900 round figure mark.
The pair built on the previous session’s goodish rebound from two-week lows and gained some follow-through traction for the second consecutive day on Tuesday amid the prevalent risk-on mood, which tends to undermine demand for traditional safe-haven currencies – including the Swiss Franc.
Risk-on mood supportive of the positive move
The incoming positive trade-related headlines fueled optimism about a possible US-China trade deal later this month and boosted the global risk sentiment. In the latest development, the US Commerce Secretary Wilbur Ross said on Sunday that the licenses for American companies to export certain technology products to China’s Huawei would be issued very shortly.
On the other hand, the US Dollar failed to attract any meaningful buying interest and remained depressed through the early European session on Tuesday, despite the ongoing upsurge in the US Treasury bond yields, which might eventually turn out to be the only factor keeping a lid on any subsequent positive move for the major.
Moving ahead, Tuesday’s US economic docket – highlighting the release of ISM non-manufacturing PMI – will now be looked upon for some short-term trading impetus later during the early North-American session.
Technical levels to watch
Share
